Inventory Management

by Audrey Porto

Submitted : Spring 2019

The purpose of the project is to determine the inventory strategy to minimize total costs associated with a product. Within the calculation is a given set of fixed charges which, when placed into the equation, can help determine the optimum number of ordering cycles each year, the corresponding number of units, and the annual costs.  Once the optimum number of ordering cycles and units ordered per cycle is determined, a break-even point is calculated.  The beak-even point states the minimum cost the product must be sold at which there is no profit or loss.  This is beneficial for companies when calculating future and anticipated profits or loss.  

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